In this case involving no-fault insurance benefits, the trial court ordered defendant-insurer Farmers Insurance Exchange to pay plaintiffs attorney one-third of the amount of the check issued by Farmers Insurance to Butterworth Hospital for payment of plaintiffs medical bills pursuant to plaintiffs contingent fee agreement with his attorney. Appellant Butterworth Hospital appeals as of right from that order, and we reverse.
In January 1994, plaintiff filed suit against defendant insurance companies following plaintiffs injury in an automobile accident in January 1993. Plaintiff was a passenger in a vehicle being driven by an insured of defendant Lake States Insurance Company when the vehicle was hit by a vehicle being driven by an uninsured driver. Plaintiff claimed a right to no-fault personal protection insurance benefits, and the claim was assigned to defendant Farmers Insurance Exchange by the Assigned Claims Facility. Plaintiff claimed that defendants had not paid the required benefits under the no-fault act and that he would seek statutory interest if the benefits were not paid within the thirty-day statutory period. Finally, plaintiff indicated that he would seek statutory attorney fees if defendants did not pay this claim without the necessity of litigation. Plaintiff’s complaint was dismissed without prejudice in October 1994 for failure to serve defendants in a timely manner.
Plaintiff thereafter moved for a determination of attorney fees, claiming that the suit was never served because defendant Farmers Insurance paid plaintiffs first-party benefits. Plaintiff stated that the suit was filed as a protective measure because the period of limitation was scheduled to expire shortly after plaintiff first consulted his attorney. Plaintiffs attorney averred that he expended substantial effort in attempting to contact defendant Farmers Insurance to obtain payment in January or February 1995, in spite of prompt submission of the medical bills to
On appeal, appellant Butterworth Hospital argues that the trial court erred in awarding fees to plaintiff’s attorney from the no-fault benefits paid to plaintiff’s medical care provider. We agree with appellant and reverse.
Michigan has long held that “attorney fees are not usually recoverable unless a statute, court rule, or common-law exception provides to the contrary.”
Popma v Auto Club Ins Ass’n,
Reversed.
Notes
Because Starkey was decided before November 1990, we are not bound by it under MCR 7.215(H).
